The Real Deal New York

HUBB NYC picks up LES rental property for $25M

40-unit elevator building at 99 Suffolk Street holds preschool in ground-floor commercial space
April 11, 2016 03:55PM

99 Suffolk Street HUBB NYC

From left: 99 Suffolk Street on the Lower East Side and Johnny McCarthy

Real estate investment firm HUBB NYC picked up a mixed-use rental building on the Lower East Side for $24.6 million, or just over $830 per square foot.

The 29,600-square-foot property at 99 Suffolk Street is located between Delancey and Rivington streets on the Lower East Side. In addition to its 40 rental units, the 13-year-old elevator building’s ground-floor commercial space holds a preschool.

The deal for 99 Suffolk Street closed earlier this month, according to the Commercial Observer, with the $830 per square foot purchase price slightly above the $800 pre square foot average for the area but shy of the property’s $26 million asking price.

The seller was not disclosed, though property records indicate the building last changed hands in 2005, when Great Neck, N.Y.-based 99 Suffolk Group LLC acquired it for $14 million.

The building holds three studios, 30 one-bedroom units and two two-bedroom apartments, according to Cushman & Wakefield, which marketed the property. The property building was also covered by the now-expired 421a tax abatement through June 2015.

Midtown-based HUBB NYC, led by president Johnny McCarthy, was formerly known as Trevi Retail before changing its name in March 2015 and expanding its investment strategy to include the residential market. The firm picked up the nearby Gotham Court rental complex, at 152 Ludlow Street and 149-151 Essex Street, for more than $29 million last year.

Elements Preschool, which occupies the ground-floor commercial space, just opened in September – replacing the Lower East Side Montessori School, which closed last year. [CO]Rey Mashayekhi